• by Sarah Mahoney , February 9, 2018

In a sign that outdoor sports apparel might finally be shaking off its weakness, Columbia Sportswear says its fourth-quarter sales hit a record $776 million, an 8% increase from the prior year. Better yet, it says those gains came both in Europe, marking the third consecutive year of double-digit increases, as well as the U.S., which has been plagued by industry-wide declines linked to retailer bankruptcies.

For the three-month period, the Portland, Ore.-based company says operating income reached $109.4 million, also a record, up from $100.4 million in the comparable period of the prior year. And for the full year ahead, it expects sales to increase between 5.5% and 7.5%, as it 

invests “in our strategic priorities to drive brand awareness and sales growth through increased, focused demand creation investments; enhance consumer experience and digital capabilities in all our channels and geographies,” CEO Tim Boyle says in its announcement.

But outdoor brands have had tough sledding recently, challenged by the bankruptcies of both Sport Chalet and The Sports Authority. And while the trend improved in the final three months of the year, “for the last 12 months, outdoor industry sales declined in the high single-digits within the athletic specialty/sporting goods channel,” writes Matt Powell, NPD Group’s senior industry analyst for sports, with sales of outdoor footwear falling 10%, apparel and accessories in the mid-single digits, and gear sales dropping in the high single-digits.

For the 12-month period, he says many smaller brands, including Patagonia, Arc’Teryx, Kuhl, Sorel (a Columbia brand) and Carhartt, bucked the trend and showed “nice increases.” But full-year sales in those categories at Nike, Under Armour, The North Face, Yeti Coolers, and Columbia all posted declines in the U.S., he says.

He expects weaker gun sales will continue to depress results, as will a little consumer boredom: “It is clear that there is no new hot item or must-have category that is of scale to move the industry.”